EDF / 2018 Reference document

PRESENTATION OF EDF GROUP Description of the Group's activities

Preparation of a programme to build new nuclear reactors in France On 25 January 2019, the French government published the main guidelines of the multi-year energy programme. In accordance with these guidelines, the government stated that it would conduct in-depth work with the nuclear sector by mid-2021 so as to be able to decide on the appropriate nature of a programme of renewal of nuclear facilities in France. The sector contract signed on 28 January 2019 by the French government and the Nuclear Sector Strategic Committee (CSFN) contains a section on the preparation of the industrial capacity necessary for the performance of a programme of construction of new reactors in France. In order to keep in line with this initiative, EDF has started to prepare economic and industrial proposals based on the EPR2 technology. EDF will provide the information to enable the French government to define an appropriate regulatory framework for the financing of such an industrial programme. Projects under development In March 2018, EDF signed a non-binding industrial cooperation agreement with the Indian national electricity company Nuclear Power Corp of India Ltd. (NPCIL) for the construction of 6 EPR reactors in India at the Jaitapur site. This agreement defines the industrial scheme, the roles and responsibilities of the partners as well as the project's next steps, including, in particular, the supply by EDF and Framatome of all the nuclear island's studies and equipment. An initial commercial and technical offer was submitted in May 2018 on EDF's scope of activity. To support the Jaitapur project, on June 2018, EDF and General Electric signed a strategic cooperation agreement for a long-term partnership on the construction of the conventional islands of the 6 reactors. A comprehensive conditional non-binding offer was submitted to the customer at the end of 2018 by EDF and its partners. EDF is also participating in the call for tenders initiated in Saudi Arabia by K.A.CARE (King Abdullah City for Atomic and Renewable Energy) for a construction project relating to two reactors. At the end of the first phase, EDF was notified by K.A.CARE in June 2018 that it had been selected for the next phase of the process.

Until now, the commercial commissioning of Unit 1 was based on a provisional tariff, which is below EDF's expectations. Discussions between electricity producers and the Chinese authorities will lead to a definitive tariff which will apply to the 3 rd generation nuclear plants with retroactive effect from the date of commercial commissioning. EPR 2 EDF submitted a safety options file for the “New Model EPR” (NM EPR) project at the end of 2016 to the Nuclear Safety Authority which examined it in 2017. In early 2018, the permanent experts’ group for nuclear reactors submitted its conclusions on the safety options file. In particular, it found that “most changes in the design used for the NM EPR project take into account the lessons learned from the feedback on Flamanville EPR and on the reactors currently operating as well as lessons learned from the accident at Fukushima Daiichi,” and “is of the opinion that the design options used for the NM EPR project, complemented or modified in the light of the discussions held during the technical examination which have led to a number of commitments, are likely to ensure a safety level at least equivalent to that of the Flamanville 3 EPR reactor and complies with the recommendations of ASN Guide 22 (on the design of Pressurised Water Reactors).” In parallel with the examination of the safety file by the ASN, the work undertaken by EDF and Framatome on the New Model EPR project led to the finalising in 2017 of the technical configuration of a model which could replace the nuclear fleet currently operating in France and ultimately expand the French nuclear industry’s export offers. As a result, the NM EPR project was renamed “EPR2”. This technical configuration integrates, in advance, most of the recommendations issued by the permanent experts’ group for nuclear reactors during its examination of the safety file of the NM EPR. Based on the conclusions of the permanent experts’ group and EDF's answers to questions, the ASN should issue an opinion in early-2019 on the safety options file submitted by the EPR 2 project in 2016.

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EDF I Reference Document 2018